Facebook paid FTC $4.9 billion to “protect” Zuckerberg from Cambridge Analytica scandal
Facebook paid $4.9 billion to the FTC to protect Mark Zuckerberg from being sued individually by the US agency in the Cambridge Analytica scandal, says a group of shareholders in one process that was made public this Tuesday and that was reported by Politico.
These $4.9 billion were paid in addition to the $104.7 millions of a settlement established in this case because Facebook did not alert its investors about Cambridge Analytica’s data collection.
“Zuckerberg, Sandberg, and other Facebook directors agreed to authorize a multi-billion settlement with the FTC as an express quid pro quo to protect Zuckerberg from being named in the FTC’s complaint, made subject to personal liability, or even required to sit for a deposition,”, points out the lawsuit filed by the company’s shareholders’ group.
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In introducing this process, shareholders argue that “Zuckerberg methodically filled the administration with friends, cronies and employees.” “When directors muster the courage to stand up to him or speak out, Zuckerberg pushes them away,” shareholders add.
“The Board has never provided a serious check on Zuckerberg’s unfettered authority,” one set of shareholders said.
“Instead, it has enabled him, defended him, and paid billions of dollars from Facebook’s corporate coffers to make his problems go away.”